L A B O U R E X P LO I TAT I O N A N D P U B L I C P R O C U R E M E N T
Phase 4 - Measures during the contract period Although the identification of human trafficking and labour exploitation is ultimately the responsibility of the authorities, professionals engaged in public procurement can identify cases of exploitation and help to expose human trafficking and promote victims’ access to services. Monitoring and inspections during contract periods can be carried out as long as the contract terms and conditions are described in the contractor’s invitation to tender. It is important to develop auditing or contract supervision within public procurement, as the resources of the supervisory authorities are limited and only a small share of misconduct is detected. It is equally important to maintain a dialogue with suppliers throughout the contract period to ensure that the measures related to the prevention of labour exploitation specified by the contracting entity are implemented and, if necessary, further developed in cooperation between the contracting entity and the supplier. Contracting entities should use discretion in determining how and with what priorities they will organise supervision, on and off sites, and making sure that terms and conditions of employment are respected. The national strategy and action plan for tackling the grey economy and financial crime emphasises the importance of developing auditing methods in the public sector and, in particular, the fact that supervision should be cost-effective, and risk based.25 The aim of the supervision by contracting entities could be for example preventing labour exploitation as part of combating the grey economy, or strengthening the sharing of information, the identification of deficiencies, checking the accuracy of information requested in advance, and cooperating with different actors. For the contracting entity to be able to carry out effective contractual supervision, it must allocate sufficient staff and time resources for doing so. For this reason, it is important that municipalities and central government actors commit to implementing sustainable procurement on a strategic level. In the prevention of labour exploitation and human trafficking as part of contractual supervision, it is important that persons carrying out audits or inspections activities understand the links between different forms of exploitation, violations of the labour code and labour crimes and know of the signs of exploitation. Inspection activities should be supported by the systematic management and updating of contract documents and contract information. Upto-date information on staff and working hours of people employed by the tenderer along with changes in subcontracting chains will support both the contracting entity
Ministry of Economic Affairs and Employment. 11.6.2020. Government decision on the national strategy and action programme for combating the grey economy and financial crime 2020-2023. 25
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